server logs are a gold mine if you know what to look for
and how to analyze the appropriate data relationships.
Combined with some basic financial information, the data
can produce some valuable insights. Why, without even
looking at your actual site, somebody else could tell you
a lot about how successful you are just by playing with
these numbers. So, let's play!
and paper at the ready, dudes and dudettes. Time to see
how well your site is actually doing. These simple
exercises will give a snapshot of where you are, and if
you continue to do these calculations over time, you'll be
able to track the effectiveness of your improvement
Conversion Ratio (also called sales closing ratio and
sales closing rate) is the Bottom Line Metric out there.
It’s a measure of how many of your visitors actually buy
something. I've talked before about this important
indicator of your success (see article),
so I won't go into more detail this time, except to say
for most websites by far, the CCR is way too low.
Shop.org reports the average order conversion rate for its
members is 1.8 percent. That means less than 2
people out of every 100 who visit a site actually buy
anything! Want a point of comparison? Bricks-and-mortar
operations have an average CCR of about 48 percent. That’s
27 times higher! So if you wondered if there was
room for improvement, now you know, and isn’t that great
you could increase your CCR from 2 percent to just 4
percent, you will have doubled your sales and
done it without having spent one extra penny on
marketing. Obviously, then, increases in the CCR translate
not just into significant increases in your sales but in
your profits, too.
simple to calculate your CCR. Divide your number of orders
per month by the number of unique visitors (unique “hits”)
to your website. Multiply this number by 100. The result
is the percentage of your visitors who actually buy. And
even if the number is way higher than 2 percent, you can
still improve it, and by a lot. Have I ever lied to you?
Penetration Ratio (SPR) is a quick way to determine how
successful your home page is in drawing customers further
into your sales process. It often comes as a surprise to
many e-tailers that most of their visitors never get past
the home page. You spend all those marketing bucks driving
traffic to your site and the traffic does an about-face on
arrival. In fact, most of that traffic leaves before your
home page is even done downloading.
calculate your SPR, you divide the number of unique
visitors who click to any interior page by the
total number of unique visitors that “hit” your home
page. Multiply this number by 100, and you've got a number
that represents the percent of people who go at least one
level deeper into your sales process. Subtract this
number from 100 and you've got the percent of people who don't
even make it past your home page.
Fun Has Just Begun
are just two of the ways you can get an accurate handle on
what is really going on with your online business, as well
as monitor its progress as you make improvements over
time. The friendly folks at Future Now have put together a
free suite of calculators assembled into an Excel™
spreadsheet that’s a breeze to use. In addition to CCR
and SPR, the suite in its current version includes
Customer Acquisition Cost, Customer Retention Rate, Cost
Per Visitor, Average Order Size, Sales Per Visitor,
Customer Acquisition Gap, Site Penetration Index, Average
Visit Length, Clicks to Find, Clicks to Buy and Time to
Buy. Wow! You can "download" them (the file is
actually e-mailed to you) by going here: http://www.futurenowinc.com/digitalsalescalculators.htm.
help yourself (in more ways than one). Okay? Class